OPKO Health, Inc. (NASDAQ:OPK) Q4 2022 Earnings Call Transcript

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Elias Zerhouni: I can answer that question Yale Jen. At the peak of the COVID, basically at the end of ’21, beginning of ’22, 8,000. Today, we’re 3,300.

Yale Jen: Okay. How would that also compare to prior to the COVID?

Elias Zerhouni: So in 2019, it was the same headcount, 3,300. And we’re still working on it, as Adam mentioned.

Yale Jen: And maybe just — sorry.

Unidentified Company Representative: Go ahead.

Elias Zerhouni: Just as we to bring the company back to profitability, we are hoping to achieve another $30 million of efficiencies.

Operator: The next question comes from Yi Chen with H.C. Wainwright.

Yi Chen: First question, just to clarify, have you disclosed how much royalty based on sales of somatrogon you have received in the first quarter?

Adam Logal: We have not broken it out separately. No.

Yi Chen: Okay. Do you plan to do that at some point in the future?

Adam Logal: Yes. So once the number becomes a material number, which you could expect could happen later this year based on the gross profit share shifting or the royalty scheme in Europe shifting to a gross profit and the potential U.S. market coming online.

Yi Chen: And has Pfizer indicated whether — when there will be an update regarding the U.S. resubmission, could it be first half of this year or second half of this year?

Steven Rubin: So we know exactly when. Pfizer has a regular dialogue with FDA to approval, and we hope it to be first half of this year, but they haven’t provided a specific date.

Yi Chen: Okay. Lastly, could you comment on the most recent trends of diagnostic volume specifically for non-COVID tests? And whether do you expect the diagnostic segment revenue could resume growth in the first half of this year.

Elias Zerhouni: That’s exactly what we’re working on. And it is actually essentially at the same level as 2019 base — I’m talking about the core business now. And as Adam said, we’re planning on the growth of that core business of about 3%, 4%. But the main growth is going to come from the specialty testing, as I described, in oncology, urology, women’s health and also large health systems partnerships, which is in the high single, low double-digit range.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Dr. Phillip Frost for any closing remarks.

Phillip Frost: Thank you for your questions and for your interest in OPKO. As you’ve heard, we are working on all fronts. There’s great interest in the progress of NGENLA. And your questions about what’s forthcoming in the United States are of great interest, of course. And you can be sure that Pfizer working with our team address the questions that were raised by the FDA, and we hope that — we think that they were answered in a very positive, favorable way. We hope the FDA agrees with us. And so far as the rest of the business is concerned, as it was pointed out, we have a lot of work to do, but we’re working diligently with the BioReference business to bring it back to where it should be and where we think it will be. And so far as RAYALDEE is concerned.

We didn’t talk much about it, but you can be sure that we’re working very hard to increase the revenues and profitability, and we’re enthusiastic about the work that our partners are doing on the product as well. So I’ll leave you with that and hope that as many of you as possible will participate in the R&D event on the 20th of March, and we look forward to again meeting with you to discuss the first quarter results. Thank you and have a good evening.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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